Investment Rating - The report maintains a "Buy" rating for the company [3][8][11] Core Views - The company's performance is under short-term pressure due to weak gas sales, but the integrated energy and smart home businesses are expected to create a second growth curve [3][8] - The company achieved a revenue of 113.9 billion yuan in 2023, a year-on-year increase of 3.5%, while core profit decreased by 4.8% to 7.586 billion yuan [4][6] - The company plans to pay a dividend of 2.95 HKD per share, a 1.4% increase from the previous year, with a payout ratio of 40% of core profit [4][6] Summary by Sections Market Data - Closing price: 69.20 HKD - Total shares: 1,131 million - Total market capitalization: 78,280 million HKD - Net assets: 42,660 million yuan - Total assets: 103,131 million yuan - Net asset per share: 37.71 yuan [1] Financial Performance - Natural gas retail business gross profit was 60.49 billion yuan, down 6.1% year-on-year, with retail gas volume at 25.1 billion cubic meters, a decrease of 3.1% [6][8] - The wholesale gas business gross profit fell 60.0% to 10.95 billion yuan due to a decline in international gas prices [6][8] - The integrated energy business gross profit increased by 22.6% to 19.1 billion yuan, with sales volume reaching 347 billion kWh, a 56% increase [7][8] Business Segments - The engineering installation business faced challenges, with gross profit down 5.8% to 27.7 billion yuan [8] - The smart home business saw a gross profit increase of 21.1% to 25.2 billion yuan, with a projected growth of 20%-30% in 2024 [8] Capital Expenditure and Financial Health - Operating cash flow was 96.12 billion yuan, down 4.9%, while capital expenditure was 74.4 billion yuan, a decrease of 1.1% [8] - The net debt ratio was 25.3%, a decrease of 0.5 percentage points year-on-year, with cash on hand increasing by 20.3% to 96.89 billion yuan [8]

研究报告Research Report 14 Apr 2024 新奥能源 ENN Energy Holdings (2688 HK) 现金流持续改善，派息比例仍有一定上涨空间 Sustained Improvement in Cash Flow with Potential for Increased Dividend Ratio [观Ta点bl聚e_焦yem Inevie1s] tment Focus [Tab维le_持Inf优o] 于大市Maintain OUTPERFORM (Please see APPENDIX 1 for English summary) 2023年营业利润率小幅增长，期间费用率有所下降。公司2023年 评级 优于大市OUTPERFORM 实现营收 1,138.6 亿元，同比增长 3.5%；毛利率达 12.6%，同比下 现价 HK$66.50 滑1.7pct；营业利润率达9.4%，同比增长0.4pct；净利率达6.0%， 目标价 HK$73.99 同比下滑0.7pct；核心利润75.86亿元，同比下跌4.8%，主要由于 HTI ESG 4.7-3.6-3.5 海外 LNG 销售相关 ...

港股公司报告 | 公司点评 新奥能源（02688） 证券研究报告 2024年04月 01日 投资评级 24 年燃气主业有望修复，看好泛能与智家业务持续快速发展 行业 公用事业/公用事业 6个月评级 增持（维持评级） 事件 当前价格 60.3港元 目标价格 港元 公司公布 2023 年年报。2023 年公司实现营业收入 1138.58 亿元，同比增 加3.5%；公司拥有人应占溢利 68.16 亿元，同比增长 16.2%；实现核心利 基本数据 润75.86亿元，同比减少4.8%。 港股总股本(百万股) 1,131.22 点评 港股总市值(百万港元) 68,212.53 零售：受工商业气量下滑影响，零售气业务毛利有所下降 每股净资产(港元) 41.64 资产负债率(%) 53.20 销气量方面，2023年经济恢复支撑天然气市场的持续复苏，但是由于出口 一 年内最高/最低(港元) 115.30/48.00 疲弱、房地产低迷等因素对天然气的需求起到了结构性的抑制作用。2023 年全年零售气量实现251.4亿方，同比下降3.1%； 作者 销气量结构方面，民生气量保持增长，全年实现民生气销气量53.48亿方， 郭丽丽 分析 ...

申万宏源研究 上海市南京东路99号 | +86 21 2329 7818 www.swsresearch.com 简单金融 成就梦想 公用事业 | 公司研究 工商用气承压 综合能源及智家业务保持高增 2024年3月25日 新奥能源 (02688:HK) 买入 新奥能源发布2023年年度业绩。期内公司实现营业收入1138.58亿元，同比增长3.5%；公 司拥有人应占溢利68.16亿元，同比增加16.2%；核心利润75.86亿元，同比下降4.8%；每 股基本盈利6.05元，同比增加16.3%，基本符合我们的预期。公司拟全年派息2.95港元/股 维持评级 （含中期股息），对应3月25日收盘价股息率为4.80%。 工商销气同比下降，看好2024年销气结构改善。2023年公司天然气总销售量336.21亿m³， 市场数据：2024年3月25日 同比增加 2.8%，其中零售气量 251.44 亿 m³，同比下降3.1%，主要受公司工商客户用气受 收盘价（港币） 61.45 房地产、外贸产业需求较为低迷，销气量下降4.4%至 194.86亿m³导致。公司居民销气量达 恒生中国企业指数 5,755 53.48亿m³，同比上升3 ...

Investment Rating - The report assigns a "Neutral" rating to the company with a target price of HKD 66.30, indicating a potential upside of 7.9% from the current price of HKD 61.45 [10]. Core Insights - The company's core earnings for 2023 slightly exceeded expectations, with a year-on-year decline of 4.7%, attributed mainly to profits from commodity hedging. The wholesale gas segment's gross profit fell short of expectations by approximately 25% due to lower-than-expected LNG trading profits [3][6]. - The company has increased its dividend payout ratio by 6 percentage points to 39%, despite the decline in earnings [3]. - The focus of growth is shifting towards non-LNG trading businesses, which is deemed necessary to stabilize earnings recovery. The management has separated profits from LNG trading and domestic core businesses, indicating a potential redefinition of LNG trading as a non-core business [3][6]. - Earnings composition is expected to stabilize starting in 2024, with management setting a target for retail gas segment gross profit growth of 10% [3][6]. - The report anticipates that overall core profits will decline by 9% in 2024, but growth is expected to resume in 2025 with an estimated increase of around 11% [3][6]. Financial Overview - Revenue is projected to grow from RMB 110,051 million in 2022 to RMB 139,605 million by 2026, with a compound annual growth rate (CAGR) of approximately 7.7% [2][14]. - Net profit is expected to increase from RMB 5,865 million in 2022 to RMB 8,502 million by 2026, reflecting a CAGR of about 8.5% [2][14]. - The earnings per share (EPS) is forecasted to decline from RMB 7.04 in 2022 to RMB 6.08 in 2024, before recovering to RMB 7.52 in 2026 [2][14]. - The price-to-earnings (P/E) ratio is projected to be 8.1 in 2022, increasing to 9.3 in 2024, and then decreasing to 7.6 by 2026 [2][14]. Segment Performance - The gas connection segment is expected to see a revenue decline from RMB 5,950 million in 2022 to RMB 4,480 million in 2024 [7]. - Retail gas revenue is projected to grow from RMB 60,082 million in 2022 to RMB 68,905 million by 2026, with gross profit margins expected to improve [7]. - The wholesale gas segment is anticipated to experience a significant decline in gross profit, dropping from RMB 2,736 million in 2022 to RMB 619 million in 2024 [7]. - The diversified energy and smart home segments are expected to show strong growth, with gross profit increasing by 24% and 16% respectively in 2024 [3][7].

Financial Performance - Revenue for 2023 was RMB 113,858 million, an increase of 3.5% compared to RMB 110,051 million in 2022[1] - Core profit for 2023 was RMB 7,586 million, a decrease of 4.8% from RMB 7,966 million in 2022[3] - Basic earnings per share increased by 16.3% to RMB 6.05 from RMB 5.20 in 2022[3] - The overall revenue for the company increased by 3.5% to RMB 113.858 billion, despite challenges in the natural gas sector due to weak industrial demand[8] - The net profit attributable to shareholders was RMB 6.816 billion, a significant increase of 16.2% year-on-year, with basic earnings per share rising by 16.3% to RMB 6.05[8] - Gross profit decreased to RMB 14,338 million in 2023, down 9.0% from RMB 15,756 million in 2022[21] - The net profit for the year was RMB 7,732 million, representing a 15.9% increase compared to RMB 6,666 million in 2022[21] - The company reported a basic earnings per share of RMB 6.05, up from RMB 5.20 in the previous year[21] Sales and User Metrics - Natural gas retail sales volume decreased by 3.1% to 25,144 million cubic meters from 25,941 million cubic meters in 2022[3] - Total sales volume of energy products increased by 56.0% to 34,700 million kWh from 22,239 million kWh in 2022[3] - The number of new residential gas users decreased by 11.1% to 1,854 thousand from 2,086 thousand in 2022[3] - The cumulative number of residential users increased by 6.6% to 29,775 thousand from 27,921 thousand in 2022[3] - The company developed 18,706 industrial users and completed installations for 1.854 million new residential users, bringing the total number of industrial users served to 243,168 by the end of 2023[6] - The group achieved natural gas sales of 33.621 billion cubic meters in 2023, reducing carbon dioxide emissions by 45.11 million tons[15] Financial Position and Debt - The net debt ratio improved to 25.3% from 25.8% in 2022, a decrease of 0.5 percentage points[3] - As of December 31, 2023, the company's cash and cash equivalents amounted to RMB 9.689 billion, an increase of RMB 1.633 billion from the beginning of the year[9] - The total borrowings increased by RMB 2.131 billion to RMB 21.923 billion, with a net debt ratio of 25.3%, down 0.5 percentage points from the previous year[9] - The group's current liabilities net value was approximately RMB 8.548 billion as of December 31, 2023, supported by stable operating cash flow and quality liquid assets[12] Business Segments and Growth - In 2023, the company's natural gas retail business revenue slightly increased by 0.9% to RMB 60.611 billion, with total natural gas sales volume reaching 33.621 billion cubic meters, a year-on-year increase of 2.8%[6] - The wholesale gas business revenue and gross profit decreased by 0.9% and 60.0% to RMB 29.695 billion and RMB 1.095 billion, respectively, primarily due to a significant reduction in international natural gas market opportunities[6] - The company's energy business revenue rose by 32.5% to RMB 14.513 billion, with gross profit increasing by 22.6% to RMB 1.907 billion, driven by the completion of 86 energy projects[7] - The smart home business revenue reached RMB 3.702 billion, an increase of 18.9%, with gross profit recorded at RMB 2.517 billion, up 21.1%[7] Future Plans and Strategies - In 2024, the company aims to optimize its structure and upgrade its operations while focusing on resilient growth and cross-cycle development[17] - The natural gas business will adopt flexible sales strategies to meet personalized customer needs and enhance operational efficiency[18] - The group plans to expand its multi-energy services through innovative microgrid models, targeting low-carbon factories and buildings[19] - The smart home business will be upgraded to enhance customer trust and provide a safer, more efficient gas service experience[20] Dividends and Shareholder Information - The company declared a mid-term dividend of RMB 0.59 per share for 2023, totaling approximately RMB 2.977 billion, and proposed a final dividend of RMB 2.09 per share[34][35] - The proposed final dividend is HKD 2.31 per share, an increase from HKD 2.27 in 2022, equivalent to approximately RMB 2.09[42] - The total proposed dividend for the year is HKD 2.95 per share, representing a payout ratio of 40% of the group's core profit[42] - Shareholders can choose to receive the final dividend in RMB at a conversion rate of 1 HKD to 0.907382 RMB[44] - The company is required to withhold a 10% corporate income tax on dividends paid to non-resident shareholders[46] Compliance and Governance - The audit committee reviewed the group's performance and financial statements for the year ending December 31, 2023, on March 21, 2024[48] - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2023[47] - The company’s share incentive plan trustee holds 6,732,600 shares, representing 0.60% of the issued shares[41]

Financial Performance - Revenue for the first half of 2023 was RMB 54,111 million, a decrease of 7.2% compared to RMB 58,332 million in the same period of 2022[7]. - Gross profit increased by 3.8% to RMB 7,157 million from RMB 6,894 million year-on-year[7]. - Profit attributable to owners of the company rose by 7.3% to RMB 3,333 million, up from RMB 3,105 million in the previous year[7]. - The company reported a net profit of RMB 3,784 million for the six months ended June 30, 2023, compared to RMB 3,502 million in the prior year, marking an increase of approximately 8.0%[78]. - The basic and diluted earnings per share for the period were both RMB 2.95, up from RMB 2.75 in the previous year, indicating a growth of about 7.3%[78]. - The company reported total comprehensive income of RMB 3,865 million, compared to RMB 3,687 million in the same period last year, representing an increase of approximately 4.8%[78]. - The company’s financing costs for the period were RMB 340 million, slightly higher than RMB 320 million in the previous year[78]. - The company reported a total profit of RMB 7,157 million for the six months ended June 30, 2023, compared to RMB 6,894 million for the same period in 2022, marking an increase of 3.8%[104]. - For the six months ended June 30, 2023, the pre-tax profit was RMB 3,333 million, an increase from RMB 3,105 million in the same period of 2022, representing a growth of approximately 7.3%[116]. Customer Growth and Service Expansion - The number of new residential gas users added during the period was 998, an increase of 1.9% from 979 in the previous year[7]. - Cumulative residential users reached 28,919 thousand, representing a growth of 7.9% from 26,814 thousand[7]. - The number of industrial and commercial users decreased by 9.9% to 8,233 locations from 9,138[7]. - The company has provided gas supply to over 28.92 million household users and 232,695 commercial users, enhancing customer service experience through innovative business models[15]. Energy Projects and Sales - Integrated energy projects in operation increased to 252, up from 177, marking a growth of 75 projects[8]. - Integrated energy sales volume surged by 45.0% to 15,664 million kWh from 10,801 million kWh[8]. - The comprehensive energy sales volume reached 15.664 billion kWh, a year-on-year increase of 45.0%, with comprehensive energy business revenue and gross profit growing by 30.3% and 30.8% to RMB 6.988 billion and RMB 0.913 billion, respectively[13]. - The company signed 21 new low-carbon park projects, 956 low-carbon factory projects, and 73 low-carbon building projects, with a total energy scale exceeding 14.6 billion kWh per year[13]. Dividend and Shareholder Information - The company maintained an interim dividend of HKD 0.64 per share, unchanged from the previous year[7]. - The company declared an interim dividend of HKD 0.64 per share, equivalent to approximately RMB 0.59, representing 17% of the group's core profit for the period[35]. - The company is required to withhold a 10% corporate income tax on the interim dividend distributed to non-resident corporate shareholders starting from the 2023 interim dividend[37]. Financial Position and Cash Flow - Operating cash inflow for the six months ended June 30, 2023, was RMB 4.003 billion, generating positive free cash flow of RMB 412 million[16]. - The company had cash and cash equivalents of RMB 10.938 billion as of June 30, 2023, an increase of RMB 2.882 billion compared to the end of the previous year[20]. - Total borrowings increased to RMB 21.929 billion, up RMB 2.137 billion from the end of the previous year[22]. - The net debt-to-equity ratio decreased by 2.3 percentage points to 23.5% as of June 30, 2023[22]. - The company reported a net cash outflow from investing activities of RMB 2,069 million for the six months ended June 30, 2023, compared to RMB 1,256 million for the same period in 2022, indicating a significant increase in investment expenditures[86]. - The cash flow from financing activities for the six months ended June 30, 2023, was RMB 915 million, slightly down from RMB 937 million in the same period of 2022[86]. Risk Management and Compliance - The company implemented risk management policies to mitigate commodity price risks associated with LNG contracts linked to international oil and gas price indices[28]. - The company has maintained compliance with the Corporate Governance Code as per the Listing Rules during the six months ending June 30, 2023[38]. - The company received an AA rating from MSCI for its ESG performance, reflecting its commitment to environmental, social, and governance responsibilities[39]. Share Options and Incentive Plans - The company has adopted the 2012 Share Option Plan, granting a total of 24,328,000 options to employees and business consultants[53]. - The total number of share options granted to directors is 1,267,125, with 100,000 options expired and 73,925 options reclassified, resulting in 1,093,200 options remaining unexercised as of June 30, 2023[60]. - The share options have an exercise price of HKD 76.36, with various exercise periods ranging from April 2020 to March 2029[59]. - The company has granted stock options and reward shares to directors, with specific details outlined in the report[47]. Acquisitions and Market Strategy - The company acquired a 60% stake in Haining Xinxin Natural Gas Co., Ltd. on May 12, 2023, aiming to expand its market share in the natural gas retail business[159]. - The company aims to enhance its market presence through strategic acquisitions and divestitures, as evidenced by the recent sale of non-core subsidiaries[167]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service delivery[83].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 54,111 million, a decrease of 7.2% compared to RMB 58,332 million in 2022[1] - Profit attributable to owners of the company was RMB 3,333 million, an increase of 7.3% from RMB 3,105 million in the previous year[3] - Core profit for the period was RMB 3,914 million, down 5.0% from RMB 4,119 million in 2022[3] - Basic earnings per share increased to RMB 2.95, up 7.3% from RMB 2.75 in the previous year[3] - Total comprehensive income for the six months ended June 30, 2023, was RMB 3,687 million, compared to RMB 3,865 million for the same period in 2022, representing a decrease of approximately 4.6%[21] - Net profit attributable to the owners of the company for the period was RMB 3,333 million, up from RMB 3,105 million in the previous year, indicating an increase of about 7.3%[21] - Basic and diluted earnings per share for the period were both RMB 2.95, compared to RMB 2.75 for the same period last year, reflecting a growth of approximately 7.3%[21] Sales and User Growth - Natural gas retail sales volume was 12,162 million cubic meters, a decrease of 6.9% from 13,065 million cubic meters in 2022[3] - Comprehensive energy sales volume surged to 15,664 million kilowatt-hours, representing a 45.0% increase from 10,801 million kilowatt-hours in the previous year[3] - The number of new residential gas users added during the period was 998, an increase of 1.9% from 979 in 2022[3] - The cumulative number of residential users reached 28,919 thousand, up 7.9% from 26,814 thousand in the previous year[3] - In the first half of 2023, the company's overall retail gas sales volume decreased by 6.9% year-on-year to 12.162 billion cubic meters, with retail gas business revenue slightly down by 3.6% to RMB 29.217 billion[6] Revenue and Profit Margins - The company's total revenue for the period was RMB 54.111 billion, a decrease of 7.2% year-on-year, while overall gross profit increased by 3.8% to RMB 7.157 billion, resulting in a gross margin increase of 1.4 percentage points to 13.2%[10] - The company's comprehensive energy sales volume increased by 45.0% year-on-year to 15.664 billion kWh, with comprehensive energy business revenue and gross profit growing by 30.3% and 30.8% to RMB 6.988 billion and RMB 0.913 billion, respectively[7] - The company completed the installation of 998,000 new household users in the first half of 2023, with installation revenue and gross profit rising by 2.6% and 13.0% to RMB 2.862 billion and RMB 1.526 billion, respectively[6] Cash Flow and Debt Management - As of June 30, 2023, the company's cash and cash equivalents amounted to RMB 10.938 billion, an increase of RMB 2.882 billion from the end of 2022[11] - The company's net debt ratio was 23.5%, a decrease of 2.3 percentage points from the end of 2022[11] - The company generated operating cash inflow of RMB 4.003 billion and positive free cash flow of RMB 1.412 billion during the first half of 2023[10] - The total borrowings amounted to RMB 21.929 billion, an increase of RMB 2.137 billion from the end of last year, primarily due to project financing and the appreciation of the US dollar[13] - The net debt-to-equity ratio decreased by 2.3 percentage points to 23.5% as of June 30, 2023[13] Environmental and Safety Initiatives - The company managed to reduce energy consumption by over 1.27 million tons of standard coal and cut CO2 emissions by 4.92 million tons through its low-carbon solutions[7] - The company has completed 122 provincial and above inspections as part of its safety measures[4] - The company is actively developing new industry standards and enhancing its brand influence in safety management[5] Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2023[43] - The company has adopted new accounting standards effective January 1, 2023, which may impact future financial reporting and tax liabilities[27] Future Plans and Strategic Initiatives - The company signed 21 new low-carbon park projects, 956 low-carbon factory projects, and 73 low-carbon building projects, with a total energy scale exceeding 14.6 billion kWh/year, laying a foundation for future growth[7] - The group plans to release a TCFD framework report in October 2023 to enhance its climate-related financial disclosures[17] - The group has launched a comprehensive ESG smart ecosystem platform to improve the quality of ESG information disclosure[17] - The company aims to strengthen its natural gas business by expanding customer engagement and enhancing existing customer gas usage[19] Awards and Recognition - The company received multiple accolades in the "2023 All Asia (excluding Japan) Best Corporate Management Team" awards, highlighting its strong management and investor relations[18]

Financial Performance - Total revenue for the natural gas retail business increased by 22.0% to RMB 60,082 million from RMB 49,247 million[54]. - The total revenue for the group increased by 18.2% to RMB 110,051 million from RMB 93,113 million[73]. - The company's revenue increased by 18.2% to RMB 110.051 billion for the year ended December 31, 2022, driven by core profit growth of 11.3% to RMB 7.964 billion[108]. - Core profit grew by 11.3% to RMB 7,964 million from RMB 7,154 million[57]. - Basic earnings per share fell by 24.4% to RMB 5.20 from RMB 6.88[59]. - The company reported a net profit attributable to shareholders of RMB 5.865 billion, a decrease of 24.4% year-on-year, while core profit from operating activities grew by 11.3% to RMB 7.964 billion[130]. - Free cash flow decreased by 19.4% to RMB 2,365 million from RMB 2,936 million[58]. - The gross profit for wholesale gas surged by 664.2% to RMB 2,736 million from RMB 358 million[56]. - The company's gross margin slightly decreased by 0.8 percentage points to 14.3% due to rising natural gas procurement costs and a decline in engineering installation volumes[130]. Customer and Market Metrics - The company achieved a customer satisfaction rate of 95.4% in 2022, up from 92.1% in 2021, indicating an improvement of 2.3 percentage points[12]. - The number of residential users reached 27,921 thousand, representing an 8.1% increase from 25,835 thousand[49]. - The number of newly developed residential gas users decreased by 20.4% to 2,086 thousand in 2022 from 2,622 thousand in 2021[48]. - The natural gas sales volume to industrial users reached 20.375 billion cubic meters, a year-on-year increase of 2.4%, while sales to residential users grew by 9.5% to 5.151 billion cubic meters[122]. - The total natural gas sales volume was 32,697 million cubic meters in 2022, a decrease from 33,097 million cubic meters in 2021, reflecting a decline of 1.2%[12]. - The company developed 22,003 industrial users and completed installations for 2.086 million new residential users in 2022, with a total of 22,446 industrial users served by year-end[122]. Safety and Environmental Initiatives - The company maintained a zero fatal accident rate in 2022, consistent with 2021[12]. - The carbon emission intensity was reduced to 7,036 tons of CO2 equivalent per billion cubic meters in 2022, down from 8,060 tons in 2021, marking a decrease of 12.7%[12]. - In 2022, the company achieved a gas sales volume of 32.697 billion cubic meters, reducing carbon dioxide emissions by 44.9 million tons[114]. - The company aims to align with national low-carbon development goals and enhance its clean energy offerings[109]. - The company has implemented a green finance framework and launched the "Green Action 2030" initiative aimed at achieving net-zero carbon emissions[162]. Digital Transformation and Innovation - The company is focusing on digital transformation to enhance operational efficiency and reduce costs amid rising energy prices and global inflation[109]. - The company plans to continue expanding its urban gas projects and enhance its digital management applications in construction projects, maintaining a 97% application rate in 2022[12]. - The company launched numerous innovative smart gas products in response to customer demand, enhancing its smart home business[123]. - The smart home business generated revenue of RMB 3.114 billion, up 33.0%, with a gross profit of RMB 2.078 billion, reflecting a 20.6% increase[130]. - The average revenue per household from smart home services reached RMB 118, a year-on-year increase of 19.2%, indicating significant growth potential with a current penetration rate of only 10.1% among existing customers[130][127]. Corporate Governance and Management - Liu Jianfeng appointed as Executive Director and CEO on January 16, 2023, with over 20 years of experience in corporate operations and financial management[143]. - The company emphasizes the adoption of international methane reduction standards to enhance environmental, social, and governance management[143]. - The board includes independent directors with extensive experience in energy and corporate governance, such as Ma Zhixiang and Ruan Baoguang[145][146]. - The company is focused on improving internal controls and risk management practices to ensure sustainable growth[145]. - The board consists of 11 members, with 2 female directors, representing 18% of the board, aiming for 30% by FY2025[182]. Financial Stability and Debt Management - The net debt ratio improved to 25.8%, down 0.8 percentage points from the previous year, indicating better financial stability[131]. - The total borrowing as of December 31, 2022, was RMB 19.792 billion, a decrease of RMB 98 million from December 31, 2021, with a net debt ratio of 25.8%, down from 26.6% in 2021[133]. - 83.4% of the total borrowings were at fixed interest rates, indicating a focus on managing financing costs effectively[133]. - The group has established a comprehensive risk management policy to mitigate commodity price risks associated with LNG procurement, aiming to stabilize procurement costs[140]. Awards and Recognition - The company has received multiple awards, including "Best ESG Issuer" and "Best Bond Deal" from FinanceAsia, reflecting its strong performance in ESG initiatives[115]. - The company's ESG rating was upgraded from A to AA by MSCI, marking it as the highest-rated company in its industry within the Greater China region[115]. - The company has published independent ESG reports since 2018, demonstrating its commitment to transparency and accountability in environmental, social, and governance matters[166].

Financial Performance - Revenue for 2022 reached RMB 110,051 million, an increase of 18.2% compared to RMB 93,113 million in 2021[1] - Core profit for 2022 was RMB 7,964 million, reflecting an 11.3% increase from RMB 7,154 million in 2021[1] - Basic earnings per share decreased by 24.4% to RMB 5.20 from RMB 6.88 in 2021[1] - Total dividend per share for 2022 was HKD 2.91, up 7.8% from HKD 2.70 in 2021[1] - The overall operating revenue increased by 18.2% to RMB 110.051 billion, with gross profit rising by 12.1% to RMB 15.756 billion[9] - The company reported a net profit of RMB 6,664 million for 2022, down from RMB 8,995 million in 2021, reflecting a decrease of approximately 26.0%[22] - The gross profit for 2022 was RMB 15,756 million, up from RMB 14,056 million in 2021, indicating a growth of about 12.1%[22] - The total proposed dividend for the year is HKD 2.91 per share, which corresponds to approximately RMB 2.60, representing a payout ratio of 37% of the core profit[42] Sales and Operations - Natural gas retail sales volume increased by 2.7% to 25,941 million cubic meters from 25,269 million cubic meters in 2021[1] - Comprehensive energy sales volume grew by 16.6% to 22,239 million kilowatt-hours from 19,065 million kilowatt-hours in 2021[1] - Total natural gas sales volume reached 32.697 billion cubic meters, a slight decrease of 1.2% year-on-year, while retail gas volume grew by 2.7% to 25.941 billion cubic meters, driving retail gas revenue up by 22.0% to RMB 60.082 billion[8] - The company's comprehensive energy business revenue increased by 40.3% to RMB 10.951 billion, with a gross profit rise of 14.0% to RMB 1.556 billion[7] - The smart home business revenue rose by 33.0% to RMB 3.114 billion, with a gross profit of RMB 2.078 billion, up 20.6%[8] - The company completed 60 integrated energy projects during the year, bringing the total to 210 projects in operation[7] - The company signed contracts for urban-level energy projects with an annual energy scale exceeding 18 billion kilowatt-hours[6] Customer and Market Growth - The cumulative number of household users reached 27,921 thousand, an 8.1% increase from 25,835 thousand in 2021[4] - The number of urban gas projects increased to 254 from 252 in 2021, showing a slight growth[4] - The company’s retail gas sales to industrial users reached 20.375 billion cubic meters, a year-on-year increase of 2.4%, accounting for 78.5% of total retail gas sales[8] - The company has identified effective business opportunities amounting to 34.7 billion kWh, which will support the rapid development of its diversified energy business[20] Financial Stability and Debt Management - As of December 31, 2022, the total debt of the group was RMB 19.79 billion, a decrease of RMB 98 million compared to the previous year[11] - The net debt ratio decreased to 25.8% from 26.6% in 2021, indicating improved financial stability[12] - The group had cash and cash equivalents of RMB 8.056 billion, a decrease of RMB 628 million from the beginning of the year, primarily due to debt reduction of RMB 1.258 billion[10] - The group managed to reduce its short-term borrowings by RMB 5.509 billion, resulting in a total short-term borrowing of RMB 6.341 billion[10] - The company’s financing costs increased by 16.7% to RMB 672 million due to interest rate fluctuations[9] - The company’s financing costs rose to RMB 672 million in 2022 from RMB 576 million in 2021, marking an increase of about 16.7%[22] Sustainability and Environmental Impact - The group issued USD 550 million in green bonds to fund clean energy projects, enhancing its commitment to sustainable development[15] - The LNG sales volume reached 32.697 billion cubic meters, resulting in a reduction of 44.9 million tons of CO2 emissions[16] Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2022[45] - The audit committee reviewed the financial performance for the year ended December 31, 2022, and the audited consolidated financial statements[46] - The company has established an audit committee in accordance with the Listing Rules to oversee accounting standards and practices[46] Future Outlook - The group aims to leverage opportunities from low-carbon, smart, and urbanization trends to drive transformation and upgrade in 2023[18] - The company plans to enhance its natural gas business by solidifying existing customer relationships and pursuing strategic acquisitions to expand its market presence[19] - The company aims to provide integrated smart kitchen solutions to enhance customer penetration and value per household[21] Miscellaneous - The company has no significant post-reporting events or contingent liabilities as of December 31, 2022[40] - The company held 2,685,100 shares under its share incentive plan, representing 0.24% of the issued shares as of December 31, 2022[41] - The proposed final dividend for the year 2022 is HKD 2.27 per share (approximately RMB 2.05), pending approval at the upcoming annual general meeting[35] - The total tax expense for 2022 was RMB 2,388 million, slightly down from RMB 2,398 million in 2021[32] - The company reported a net loss of RMB 1,569 million from other income and losses in 2022, compared to a gain of RMB 984 million in 2021[31] - The depreciation and amortization expense for 2022 was RMB 2,011 million, compared to RMB 1,739 million in 2021, representing an increase of about 15.6%[28] - The company’s effective tax rate is primarily 25%, with certain subsidiaries qualifying for a reduced rate of 15% as high-tech enterprises[32] - Accounts receivable decreased from RMB 3,630 million in 2021 to RMB 3,007 million in 2022, a reduction of approximately 17.2%[39] - The company reported a total of RMB 5,962 million in accounts payable for 2022, down from RMB 7,623 million in 2021, reflecting a decrease of about 21.8%[40] - The weighted average number of shares for basic earnings per share calculation was 1,127,721,566 in 2022, slightly up from 1,126,611,575 in 2021[33] - The company will suspend share transfer registration from May 19 to May 24, 2023, for shareholders to attend the annual general meeting[43]